Author
Listed:
- Bijan B. Aghevli
(International Monetary Fund)
- Mohsin S. Khan
(International Monetary Fund)
- P. R. Narvekar
(International Monetary Fund)
- Brock K. Short
(International Monetary Fund)
Abstract
This study evaluates the role of money, and assesses the conduct of recent monetary policy, in certain Asian countries (Indonesia, Malaysia, Nepal, the Philippines, Singapore, Sri Lanka, and Thailand). The paper focuses on a general comparison of the monetary experiences of these countries, without going into a detailed description of the financial structure of each one. Empirical tests conducted for these countries indicate that monetary variables do have an important effect on the behavior of important macroeconomic variables, particularly the rate of inflation. However, the underdeveloped nature of domestic financial markets and the general openness of their economies impose some constraints on monetary policy in these countries; and these constraints tend to limit the effectiveness of monetary policy as a short-term stabilization device. The theoretical case made for this turns out to be supported by an examination of the specific monetary policy tools that are at the disposal of the authorities and the use that has been made of them recently. The principal conclusion of the study is that longer-term policies based on the concept of targets for monetary aggregates are better suited to the circumstances of these economies than short-term "fine-tuning." /// Les auteurs de la présente étude analysent le rôle de la monnaie et les orientations récentes de la politique monétaire dans certains pays d'Asie (Indonésie, Malaisie, Népal, Philippines, Singapour, Sri Lanka et Thaïlande). Ils effectuent une comparaison générale des expériences de ces pays en matière monétaire, sans décrire de façon détaillée la structure financière de chaque pays. Les tests empiriques appliqués à ces pays montrent que les variables monétaires ont effectivement une grande incidence sur le comportement des variables macroéconomiques importantes, en particulier le taux d'inflation. Toutefois, le fait que les marchés financiers de ces pays soient peu développés et que leurs économies soient largement ouvertes sur l'extérieur impose aux dits pays certaines contraintes dans la conduite de leur politique monétaire, qui tendent à en limiter l'efficacité en tant qu'instrument de stabilisation à court terme. Cette hypothèse se trouve confirmée par l'analyse des instruments de politique monétaire spécifiques dont disposent les autorités et par l'utilisation qui en a été faite récemment. La principale conclusion de cette étude est que des politiques à long terme fondées sur le concept d'objectifs liés aux agrégats monétaires sont mieux adaptées à la situation de ces économies que les politiques de "réglage précis" à court terme. /// En este estudio se analiza la función que desempena el dinero y se evalúa la gestión de la polÃtica monetaria aplicada recientemente en ciertos paÃses asiáticos (Filipinas, Indonesia, Malasia, Nepal, Singapur, Sri Lanka y Tailandia). El estudio se concentra en una comparación general de la experiencia monetaria de dichos paÃses sin entrar en detalles sobre la estructura financiera de cada uno de ellos. Las pruebas empÃricas llevadas a cabo en relación con estos paÃses indican que las variables monetarias ejercen de hecho un efecto importante en el comportamiento de las principales variables macroeconómicas, particularmente en el de la tasa de inflación. Sin embargo, el carácter poco avanzado de sus mercados financieros internos y el grado general de apertura de sus economÃas imponen ciertas limitaciones a la polÃtica monetaria que puedan adoptar; estas limitaciones tienden a reducir la eficacia de dicha polÃtica como instrumento de estabilización a corto plazo. El razonaminento teórico formulado al respecto resultó corroborado por un examen de los instrumentos de polÃtica monetaria concretos que las autoridades tienen a su disposición y de la aplicación que se ha hecho últimamante de estos instrumentos. La principal conclusión a que se llega en el estudio es que las polÃticas a largo plazo basadas en el concepto de metas fijadas para los agregados monetarios son más pertinentes a las circunstancias de estas economÃas que los frecuentes reajustes más precisos a corto plazo.
Suggested Citation
Bijan B. Aghevli & Mohsin S. Khan & P. R. Narvekar & Brock K. Short, 1979.
"Monetary Policy in Selected Asian Countries (La politique monétaire dans certains pays d'Asie) (La polÃtica monetaria de algunos paÃses asiáticos seleccionados),"
IMF Staff Papers, Palgrave Macmillan, vol. 26(4), pages 775-824, December.
Handle:
RePEc:pal:imfstp:v:26:y:1979:i:4:p:775-824
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Citations
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Cited by:
- Buffie, Edward F., 2009.
"Public sector layoffs, severance pay, and inflation in the small open economy,"
Journal of International Money and Finance, Elsevier, vol. 28(6), pages 987-1005, October.
- Syed Muhammad Tariq & Kent Matthews, 1997.
"The Demand for Simple-sum and Divisia Monetary Aggregates for Pakistan: A Cointegration Approach,"
The Pakistan Development Review, Pakistan Institute of Development Economics, vol. 36(3), pages 275-291.
- Arize, A. C. & Malindretos, John & Grivoyannis, Elias C., 2005.
"Inflation-rate volatility and money demand: Evidence from less developed countries,"
International Review of Economics & Finance, Elsevier, vol. 14(1), pages 57-80.
- Arize, Augustine C. & Malindretos, John & Shwiff, Steven S., 1999.
"Structural breaks, cointegration, and speed of adjustment Evidence from 12 LDCs money demand,"
International Review of Economics & Finance, Elsevier, vol. 8(4), pages 399-420, November.
- Mr. Subramanian S Sriram, 1999.
"Survey of Literature on Demand for Money: Theoretical and Empirical Work with Special Reference to Error-Correction Models,"
IMF Working Papers
1999/064, International Monetary Fund.
- Baharumshah, Ahmad Zubaidi & Mohd, Siti Hamizah & Mansur M. Masih, A., 2009.
"The stability of money demand in China: Evidence from the ARDL model,"
Economic Systems, Elsevier, vol. 33(3), pages 231-244, September.
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